15 Indiana School Districts Sue to Block Obamacare Penalties

In an aggressive challenge to President Barack Obama’s health-care law, 15 Indiana school districts — backed by the state’s attorney general — say they shouldn’t have to pay expensive penalties if they fail to provide health benefits to employees who work a minimum of 30 hours a week.

October 9, 2013

In an aggressive challenge to President Barack Obama’s health-care law, 15 Indiana school districts — backed by the state’s attorney general — say they shouldn’t have to pay expensive penalties if they fail to provide health benefits to employees who work a minimum of 30 hours a week.

The state and school districts filed a lawsuit Tuesday in U.S. District Court in Indianapolis against the Internal Revenue Service and other federal agencies.

They claim the IRS overstepped its authority earlier this year when it set up financial penalties for employers in states such as Indiana that did not create their own health insur­ance exchanges.

At least one other state, Oklahoma, also has challenged the IRS rule. So has a group of private employers in Washington, D.C.